The Bay City Tribune | Dwight Baker
At first glance, Bay City seems to have an overabundance of hotels for its population. Yet, the promise of recurring business thanks to the growth of the area’s industrial plants, buyers are anxious to cash in.
“We have sold two hotels in Bay City in 2017. The hotel market is booming there due to the development of several industrial projects,” said Michael Yu, Senior Vice President of CBRE Hotels in a released statement. “With Tenaris recently opening and the expansion at the Chevron Phillips Chemical Sweeny Complex, it’s expected to draw even more business to the area.”
CBRE is an international real estate services firm with offices in Houston. The company announced the sale of the Holiday Inn Express and Suites at 5618 Seventh St. last Friday to Houston-based SNI 5618 Investment LP who purchased it from San Antonio-based Baywood Hotels for an undisclosed price. This is SNI’s first-ever hotel purchase. Until now, they only owned several apartment properties in Houston.
CBRE gave us the scoop on another Bay City hotel purchase they hadn’t announced yet. In September, they arranged the sale of the La Quinta Inn at 5300 Seventh St. from Bay City Accommodations, Ltd. To Twiga Hotels Bay City, LLC. The sale price was not disclosed.
“Bay City has a growing industrial base and strong agricultural base of business, keeping the market resilient despite the downturn in oil prices. The major industrial plants in the area bring in hundreds of contract workers during planned outages, shutdowns or expansions, which fuels hotel room demand,” said CBRE Hotels Vice President Eric Guerrero. “Buyers were attracted to the consistent recurring business that these plants generate for the hotels in Bay City.”
Bay City Chamber of Commerce and Agriculture President Mitch Thames welcomed the news.
“I think it is good. They’re a bigger company than the old owner and down times don’t affect the bigger boys like it does the smaller ones,” Thames said. “I think we are moving up.”